Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
DEPUTY MINISTER'S OFFICE (3) ADM 80568
ASSOCIATE DEPUTY MINISTER (1) DM 22113
ADM'S OFFICE (3)
RETURN TO RULINGS 15TH FLOOR, ALBION TOWER
December 11, 1995
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in reply to your letter of November 6, 1995, regarding payments to be received by Saskatchewan Agriculture and Food ("SAF") under the Western Grain Transition Payments Program ("WGTPP"). I understand that SAF has provided all its lessees of cultivated land with the option to purchase their leased land at the February 27, 1995, fair market value and to receive the entire WGTPP relating to that land. In these situations, the agreement of purchase and sale would provide that the purchaser, the current lessee, would receive from the vendor an amount equal to the entire WGTPP payment relating to that land as an adjustment in the purchase price.
I can confirm that, in these situations, the purchaser should reduce the purchase price by the amount of the payment received from SAF in accordance with the terms of the purchase and sale agreement. Since the payment will have been made in accordance with the purchase and sale agreement, rather than pursuant to an equitable arrangement referred to in paragraph 6(c) of the WGTP Act, the payment will not be required to be reported in computing the income of the purchaser.
I trust that these comments will be of assistance.
Yours sincerely,
Pierre Gravelle, Q.C.
A.M. Brake
957-2133
December 5, 1995
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